Israeli Prime Minister Benjamin Netanyahu appeared poised to remain in office as caretaker leader after his right-wing bloc performed better than expected in the country’s election, despite falling short of a parliamentary majority.
With nearly 86% of votes counted on Wednesday, Israel’s three main broadcasters projected that Netanyahu’s bloc of right-wing, far-right and ultra-Orthodox parties would secure 53 seats in the 120-seat Knesset, compared with 48 seats for the opposition bloc led by rival Gadi Eisenkot.
Parties representing Arab Israelis were projected to win a record 19 seats, leaving Eisenkot with little realistic chance of forming a government without substantial support from Arab political groups — an alliance many Jewish political leaders oppose.
Although the final results could still change, the opposition bloc, which includes parties ranging from the centre-left to the hard right, underperformed compared with pre-election polls that had suggested a close contest.
Netanyahu is expected to remain caretaker prime minister during coalition negotiations and potentially until another election next year.
While caretaker governments face certain restrictions, they retain significant powers, including authority over military operations involving Iran.
Guy Lurie, a research fellow at the Israel Democracy Institute, said a caretaker government formally held the same powers as a regular administration but was expected to exercise restraint and had less discretion in some areas.
Netanyahu Signals Possible Renewed Action Against Iran
Speaking to supporters of his Likud party after 3am on Wednesday, Netanyahu called for the formation of a “strong, right-wing national government”.
He highlighted Israel’s military achievements and suggested further joint military action against Iran alongside US President Donald Trump, describing the situation as a “singular historical opportunity” to eliminate what he called the Iranian threat “once and for all”.
Trump, who had urged Israeli voters to keep Netanyahu in power so the two leaders could “finish the job” in Iran, said the Israeli leader had performed “very well” and claimed his endorsement had helped him significantly.
However, the election result has fuelled concerns over Israel’s political direction and the possibility of further regional conflict.
In Tehran, banners featuring slain Iranian Supreme Leader Ayatollah Ali Khamenei served as reminders of the US and Israeli strikes launched in February that triggered the war. Posters of former Hezbollah leader Hassan Nasrallah, who was killed in Lebanon, were also displayed nearby.
“I genuinely see the possibility of attack,” said Abdollah Karimi, a 50-year-old Iranian citizen.
In Egypt, meanwhile, frustration was evident among those who had hoped Netanyahu’s defeat would steer Israel away from the far right. Egypt became the first Arab country to establish peace with Israel in 1979.
Eisenkot acknowledged that Netanyahu would remain caretaker prime minister but warned against the possible political use of security matters.
“I call on the heads of the security establishment and the civil service: Netanyahu is a caretaker prime minister, without a mandate or the people’s trust,” he said, urging officials to resist any attempt to undermine them.
Netanyahu’s office has previously rejected accusations that he uses the Iran conflict for political gain. It did not immediately respond to a request for comment on Wednesday.
Israeli Markets React To Political Uncertainty
The prospect of a caretaker government without a parliamentary majority weighed on Israeli financial markets.
The shekel weakened by around 1.6% to 3.10 against the US dollar, while Tel Aviv’s main stock market indexes fell by more than 3%.
The results also highlighted a broader rightward shift among Israeli Jewish voters during Netanyahu’s years as the country’s dominant political figure.
The centre-left, which dominated Israeli politics during the country’s first decades, has been reduced to a relatively small political force. Nearly all Jewish parties now reject the prospect of an independent Palestinian state, which has formed the basis of internationally backed peace efforts since the 1990s.
The election was Israel’s first since Hamas-led fighters killed around 1,200 people and took 251 hostages during the 7 October 2023 attacks, triggering wars in Gaza, Lebanon and Iran.
The war in Gaza has devastated the territory and killed 74,000 Palestinians, according to Gaza health authorities, leaving Israel increasingly isolated internationally.
Netanyahu is also wanted by the International Criminal Court in The Hague on war crimes charges, which he has dismissed as absurd. He is separately facing corruption charges in Israel, which he has described as an establishment plot.
Record Turnout Among Arab Israeli Voters
Voter turnout reached 77.7%, the highest in more than two decades, with particularly strong participation among Israelis of Palestinian descent, who account for more than a fifth of the population.
Many Arab Israeli voters were motivated by what they regard as racism within Netanyahu’s government, which includes a party leader previously convicted of inciting racial hatred against Arabs.
At the headquarters of the Joint List, an alliance of several Arab parties, supporters cheered as exit polls were released.
“We refuse the occupation and racism, and we will remain here,” said Joint List candidate Faten Gattas.
A previous coalition that removed Netanyahu from power relied on support from a small Arab party. However, Eisenkot’s weaker-than-expected performance means the opposition would now need backing from the Joint List itself to have a realistic chance of forming a government.
Formal alliances between Jewish-led parties and Arab political groups remain politically contentious in Israel, further complicating efforts to unseat Netanyahu.
